'Based on what’s happened so far, we predict that home values will raise another 6 percent or 7 percent before 2013 comes to a close,' says RealtyPin.com CEO James Paffrath.
New York, New York (PRWEB) April 02, 2013
It’s been a long time since climbing home values have dominated the headlines. However, that’s exactly what America’s home prices are doing right now! In fact, home prices around the country are currently climbing at the same pace as they were before the housing bubble burst.
According to RealtyPin.com, home prices are going up just as fast this quarter as they were in the summer of 2006 – back when the housing bubble was in full bloom. RealtyPin.com tracked 14 cities throughout the month of January and another 27 cities during the same month.
According to the results, the 14-city composite showed an average gain of 7.8 percent over the past year, while the 27-city composite showed an average increase of 8.2 percent. “Based on what’s happened so far, we predict that home values will raise another 6 percent or 7 percent before 2013 comes to a close," says RealtyPin.com CEO James Paffrath.
The only difference between the current housing market and the one America had back in 2006? The prices themselves. While today’s prices are climbing quickly, they’re still well below 2006’s prices – almost 30 percent lower than their pre-crash peak, to be exact. Still, though, the increase is a sign that the nation’s housing market is starting to get back into full swing, after years of plummeting values and fear among homeowners and buyers alike.
What’s responsible for the current increases?
The shadow inventory has a lot to do with it – or, rather, a lack of one. “Shadow inventory” is the term real estate experts use to describe foreclosed homes that have not hit the selling block yet. For years, America had been so bogged down in distressed properties that there was always a fear of a glut of them hitting the market at the same time – and driving down the rest of the market’s value in the process. But now that millions of foreclosed homes have already been sold, there is a lot less fear over the shadow inventory.
That doesn’t mean that foreclosed homes are completely gone, though. In states where foreclosures have to go through the court system (the “judicial” states), a backlog is still creating some shadow inventory fears. So, those states may not see as many price gains as their non-judicial counterparts will.
Which markets performed the best according to RealtyPin.com?
San Francisco, Las Vegas, and Phoenix were right at the top. The experts at Realtypin.com say this is especially-welcome news in these metros, because all were hit hard when the housing bubble burst. Detroit was also a strong performer, with a double-digit increase.